Sales of auto e-products expected to soar
(Xinhua)
Updated: 2004-10-19 09:50

Analysts have predicted the overall sales of auto e-products inChina would soar to 250 billion yuan (US$30 billion) in 2005.

Sales of auto e-products have kept rising in China in recent years. The figure in 2003 hit 30 billion yuan (US$3.63 billion), a sharp increase of 41.5 percent from that of 2002.

The wide use of electronic products in automobiles has turned auto-electronic industry into a new booming trade in China, said an official from the Ministry of Information Industry.

The demand for automobiles in 2005 is expected to exceed 5.5 million in China, much more than 4 million in 2003.

Besides, the value of electronic products car will increase from the present 22 percent to 35 percent by 2010, according to the ministry. Auto electronic products would be a market of great potentials.

At present, over 1,000 enterprises are engaged in auto electronic products in China. In Shenzhen, a boomtown in South China, more than 100 corporations have been set up to make auto e-products.

However, most of these enterprises only make products of low level due to its relatively backward technology, said Yuan Dahong,professor of auto electronic studies from Qinghua University.

Overseas enterprises still dominate China's market of auto e-products, with 70 percent of the market share, said Yuan.

Facing a promising market, more and more investors are turning to auto e-products and governments are making efforts to promote the trade.

China's auto electronic industry is still at the preliminary stage, according to the Ministry of Information Industry. The ministry has decided to give stronger support to the newly emerging trade.

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